Plastics in Automotive Industry 2016 - International Conference

Organizers:

Inventra

Subject:

The Russian automotive market fell by 36% in 2015: only 1.6 million vehicles were sold. Such a sharp drop in sales, combined with ruble depreciation, compels manufacturers to adjust plans for 2016. The most optimal strategy is to increase the percent of localization, and thus raise the share of ruble-denominated components in the cost of the car. Therefore, local producers of raw materials and components have the chance to grow supplies to the plants of international carmakers.

However, the requirements for components at the automobile plants producing international brands are traditionally high. The situation now is that locally-made parts, compared to imported, have lower quality, output volumes and regularity of supplies. This means that Russian companies must start bringing the characteristics of their products to the demands of potential customers.

Russian automobile producers have also gained some benefits from the situation. Several major international brands have left the Russian market; Chinese cars have become less popular among consumers; foreign competitors are forced to raise prices due to ruble’s weak exchange rate. All this creates preconditions for higher demand for Russian automobiles. In addition, the largest local carmaker is upgrading its model line and is ready to offer a competitive product at a reasonable price.

In 2016, the decline in consumer demand will continue. The general trend cannot be overturned, but the government is taking certain steps to slow down the decline. In particular, the demand can be supported by prolonging the government-funded programs aimed at sales of new cars. Special leasing terms, loans, recycling and trade-in programs are also on the list. Another important decision for the automotive industry will be budget subsidies to support exports of Russian and localized carmakers.

The following topics will be discussed at «Plastics in Automotive Industry 2016» Conference: Automobile market • overview of Russian automobile market (including freight and commercial transport) • production, import, export, situation in the market • government support and its effect